Business leaders have launched a campaign against the "relentless build up" of red tape from the European Union which they warned was damaging job creation.

The Confederation of British Industry joined calls for an end to industrial relations legislation and said EU leaders should stop "dragging their feet" on measures to boost trade.

Officials from European employers group Unice and the CBI met Trade and Industry Secretary Patricia Hewitt to step up pressure for economic reforms ahead of an EU summit in Barcelona later this month.

CBI director general Digby Jones said many proposals being made from Brussels were "completely anti-business".

He also singled out "dangerous" proposed guidelines that redundancies should only be justifiable on immediate economic grounds.

"Issuing these directives is working towards not creating any more jobs in Europe. It is against people employing more workers. Companies want to find ways of encouraging job creation but, too often, they are fighting to resist the latest attack on labour market flexibility."